You might have been using Twitter for years now since it was launched, but still wondering how exactly the company makes profit out of its service.
That wouldn’t be a question for you now as Twitter officially launched its advertising program called Promoted Tweets.
Basically, Promoted Tweets works similarly with Google’s advertising model wherein branded tweets will appear on Twitter search results based on relevant keywords. It was described as “ordinary tweets that businesses and organizations want to highlight to a wider group of users”. A Promoted Tweet, which will be paid by advertisers, will be featured on the search result page. Among the first companies to post branded tweets are Best Buy, Bravo, Red Bull, Sony Pictures, Starbucks, and Virgin America.
A detailed explanation from Mahalo says,
Promoted posts will also be measured by what’s known as a “resonance score,” taking into account 9 different factors all based around the level of engagement that tweet inspired in other users. If a Promoted Tweet does not get clicked on or retweeted a certain number of times, it will disappear from the system.
After the system is introduced in search, Twitter has plans to move Promoted Tweets directly into a user’s Twitter stream, showing it to them along with all the other messages received from users whom they are following. Twitter will use factors such as subject matter, followers’ interests, and geographic locations to determine which Promoted Tweets to show to which users. The Promoted Tweets that show up for various users will also be determined by a CPM, or “cost per impression,” that an advertiser is willing to pay. The higher the CPM, the more likely that a given user will see that particular Promoted Tweet.